Baku. 1 May. REPORT.AZ/ Milli Majlis is expected to ratify new production-sharing agreement (PSA) for the joint exploration and development of Block D230 before the summer recess.
Report informs referring to BP's report for the 1st quarter.
“On 26 April, BP and the State Oil Company of Azerbaijan Republic (SOCAR) have signed a new production-sharing agreement for the joint exploration and development of Block D230 in the North Absheron basin in the Azerbaijan sector of the Caspian Sea. The agreement is expected to be ratified by the Azerbaijani parliament before the summer recess”, - the report said.
Notably, PSA was signed in London, in the presence of Azerbaijan’s President Ilham Aliyev and UK Prime Minister Theresa May, by the SOCAR President Rovnag Abdullayev and BP’s Group Chief Executive Bob Dudley.
Block D230 lies some 135 kilometres (84 miles) north-east of Baku in the Caspian Sea. It covers an area of some 3,200 square kilometres and has not previously been explored. It has water depths of 400-600 metres and anticipated reservoir depths of about 3,500 metres. Under the PSA, which is for 25 years, BP will be the operator during the exploration phase holding a 50 per cent interest while SOCAR will hold the remaining 5 per cent interest. The signing of the PSA follows the Memorandum of Understanding (MoU) for exploration of Block D230, which was agreed in May 2016.